The VLCC brand has positioned itself to provide holistic wellness and beauty solutions
Founded in 1989, VLCC (www.vlccwellness.com) is a well-known beauty and wellness brand, covering wellness, weight management and beauty services, personal care products, nutraceuticals and skills development institutes.
VLCC has built a significant international business in 12 countries over the past 32 years, serving nearly 10 million customers in the past 10 years alone. It directly employs nearly 3,000 professionals, including doctors, nutritionists, physiotherapists, cosmetologists and fitness experts.
It has an established presence of 310 outlets in 143 cities in 12 countries, including 216 VLCC wellness and beauty clinics in South Asia, the GCC region and East Africa, as well as 94 VLCC beauty and nutrition institutes in 67 cities in India.
VLCC also operates 3 manufacturing plants – 2 in India and 1 in Singapore – to produce over 118 skin, hair and body care products which have been developed in-house and are retailed in over 110,000 outlets. general and modern sales across India, including over 930 beauty consultant counters, in addition to being used as consumables for treatments and therapies in its wellness and beauty clinics and institutes. These personal care products are also sold in global markets, including cosmetic dermatology salons and clinics in the Southeast Asia region.
In the weight management services segment (excluding gyms), VLCC is the largest player in the GCC region with the maximum number of wellness clinics to meet the growing market (1). In addition, in the laser and cosmetic dermatology segment, VLCC is one of the main players in the GCC region (1). The majority of market players in the GCC region are present in only a few segments. VLCC is the only exception with a full service portfolio. VLCC has created a significant presence in salon services, wellness and weight management treatments, beauty treatments, cosmetic dermatology and alternative therapies, among others, and offers the widest range of services among participants present in most countries of the GCC region (1). It is also one of the largest players in the wellness and beauty services industry in India, with the largest footprint of company-run clinics (1).
(1) Source: Report entitled “Wellness and Beauty Industry report in India and GCC” dated July 15, 2021 prepared by Frost and Sullivan
THE WELLNESS AND BEAUTY INDUSTRY IN THE GCC REGION 2
Revenues from wellness and beauty products and services in the region reached approximately $ 30.6 billion in 2020 and are expected to climb to $ 46.6 billion by 2025. While demand fell in 2020 , due to a combination of lockdowns linked to the Covid-19 pandemic and related factors, consumer demand for products and services that will make them feel good and look good is back.
The wellness and beauty market in the GCC region is expected to grow by around 8-10% over the next five years, and key players such as VLCC, Kaya Clinic, Cosmesurge are expected to have successful experiences in the The operation of wellness and beauty clinics in the GCC countries are well positioned to benefit from market growth in the wellness and beauty segments.
The beauty care and beauty salon industry holds about 25 percent of the overall market for wellness and beauty services, while fitness, as well as spas and alternative therapies, share the 75 percent. remaining. In terms of growth, the beauty care and beauty salon industry is expected to grow at a CAGR of 9-10% between 2020 and 2025. The fitness industry, along with spas and alternative therapies, is expected to grow at a CAGR of 4 -5 percent and 9-10 percent respectively over the same period.
1 Source: Report entitled “Wellness and Beauty Industry report in India and GCC” dated July 15, 2021 prepared by Frost and Sullivan
VLCC wellness and beauty clinics
VLCC operates 20 wellness and beauty clinics in United Arab Emirates, Oman, Bahrain, Kuwait, Qatar and Kenya and 111 such clinics in South Asia including India, Sri Lanka, Bangladesh and Nepal.
These clinics offer comprehensive wellness and beauty solutions, meeting a wide range of client needs across all service categories, such as:
• Wellness therapies, including immune boosting packages and post-Covid-19 recovery programs;
• Weight management packages, delivered through nutrition management, physical activity regimen and behavioral counseling;
• Body sculpting using advanced devices approved by the USFDA;
• Cutting-edge beauty treatments and therapies for skin and hair;
• Minimally invasive aesthetic dermatological interventions;
• Laser hair removal;
• Regular beauty salon services including hair styling, coloring, grooming, etc.
These clinics also retail VLCC personal care products which are often added to wellness or beauty packages.
VLCC is the only brand whose wellness and weight management programs carry the “Recommended by Indian Medical Association” seal of approval. The Indian Medical Association (IMA) is India’s national organization of physicians in modern medicine, with a membership base of over 330,000 physicians.
Personal care products
Beginning with retailing products in its own clinics, VLCC has built a fully independent and diverse product business that is now a mainstream personal care and wellness brand. The carefully selected product line includes skin and hair care lines (e.g. sun lotions, shampoos), specialty products (e.g. face kits, manicure-pedicure kits), body sculpting products (eg, Shape Up ™) and nutraceuticals (VLCC Wellcience ™).
The VLCC product brand is positioned as a player in the “natural sciences”, on the platform of the natural, functionally efficient and aesthetic. The brand relies on strong internal R&D and two modern manufacturing plants in India and one in Singapore. A robust distribution system has been built over the years, with the brand selling through more than 110,000 points of presence in India, outside of the other countries in which it operates including salons, spas and cosmetic dermatology clinics. .
VLCC Beauty & Nutrition Institutes
One of the main opportunities in the field of wellness and beauty is the lack of training and the resulting shortage of a highly skilled workforce. Recognizing this shortcoming, VLCC has opened exclusive institutes to provide beginner and advanced skill improvement courses in beauty and nutrition.
VLCC believes that its institutes extend the brand’s mission of transforming lives by helping to create jobs and entrepreneurial opportunities, especially for women, to enable their financial independence. It currently operates 94 institutes, located in 67 cities across India, training nearly 10,000 students per year.
With over 30 years in business, the VLCC brand is well known and enjoys a high level of trust from customers and was recognized as a “Supermarket” by Superbrands GCC in 2016 and Superbrands India in 2017. This is also reflected in the recognition of VLCC as one of the most trusted Indian brands in the wellness industry in the annual survey of the most trusted Indian brands from 2015 to 2019.
It has grown from a “weight management services” brand to a holistic “wellness and beauty” brand, having successfully extended its brand value in the wellness and beauty field to encompass wellness and beauty services, personal care products and beauty and beauty skills development. nutrition, and simultaneously cost-effectively extended the reach of its brand to meet the needs of international customers of all ethnicities in the GCC region, East Africa, South Asia and Southeast Asia.
There are huge opportunities in the rapidly growing wellness sector, which in the post-Covid-19 era will become even more relevant to consumers of all ages, given increased awareness of healthcare and proactive and preventive well-being. There is immense potential for new opportunities as health and wellness spending has become a necessity rather than discretionary, making businesses highly scalable. Additionally, with the advent of digitalization and the maturing of the e-commerce ecosystem, the wellness and beauty industry is poised to become borderless and age agnostic of customers rather than to be limited by physical presence, thus making businesses more profitable and sustainable. . VLCC believes these factors will help it continue to generate scalable and sustainable growth.
VLCC’s goal is sustainable, competitive, profitable and responsible growth for the entire company, through a comprehensive strategy leveraging its category-leading brand, scale and tailored integrated business model. . The brand will seek to achieve this objective through the following elements:
• Leverage technology and digital initiatives across its business to transform into a digitally-led, future-ready wellness and beauty company with an omnichannel presence;
• Accelerate the growth of the personal care products business;
• Accelerate the pace of expansion of VLCC wellness and beauty clinics and VLCC institutes and capitalize on the experience of the CCG region to explore new opportunities in the untapped markets of the CCG region;
• Improve comparable store sales growth;
• Continue to focus on brand visibility and customer loyalty.